Introduction
After the Second World War, regional economic
integration of trading blocks emerged as a new
idea for expansion of foreign trade among the
developing countries.
Economic integration:
The term economic integration is commonly
used to refer to agreements between countries
which remove artificial trade barriers, like tariffs
and quantitative restrictions and leads to
liberalization of trade and investment between
countries. At their deepest they have the objective,
judicial and legislative institutions.
Objectives of economic
integration:
Economic integration schemes have several
Objectives of economic
integration:
4. To improve members bargaining strength in
Forms of integration:
There are different degrees or levels of
economic integration. Bela balassa in the
theory of economic integration [1961]
perceived the following five possible levels or
degree of economic integrations.
1. Free trade area/ association.
2. Customs union.
3. Common market.
4. Economic union.
5. Economic integration.
2-Customs union:
It
3-Common market:
A common market allows free movement of
4-Economic union:
The economic union achieves some degree of
5.POLITICAL UNION
The
Community
Community
Community
1951
Founding Members
Belgium
France
Germany
Italy
Luxembourg
Netherlands
1973
Denmark
Ireland
United Kingdom
1981
Greece
1986
Portugal
Spain
November 1989
Fall of the
Berlin Wall
sets the
stage for
unifying
Europe and
EU enlargement
1995
Austria
Finland
Sweden
2004
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
2007
Bulgaria
Romania
Candidate Countries
Croatia
GROWTH OF THE EU
Admission of
Romania and
Bulgaria
2007
Croatia and
Macedonia
are new
candidates
Major
debates
about Turkey
Community
Community
The European
Parliament
The European
Commission
Promoting the
common
interest
Organization of EU
European Council
European Parliament:
NAFTA - NORTH
AMERICAN FREE TRADE
AREA
NAFTA - NORTH
AMERICAN FREE TRADE
AREA
Members - Canada , USA & Mexico
Came into effect on January 1 1994
Large Trading Block and include country of
different sizes
US-Canadian trade is the largest bilateral trade in
the world
US is Mexicos and canadas largest trading
partner
NAFTA is a good example for trade diversion. After
the formation of this regional block, USA s trade
and investment in Asia is diverted to Mexico.
NAFTA objectives
Elimination of tariff and non tariff barriers,
Harmonisation of Trade rules (Subsidies, anti
dumping etc)
Liberalisation of restrictions on services and
Foreign Investment
Enforcement of Intellectual Property and
Dispute settlement process
Other Provisions
Protection of labour rights
Improving working conditions
providing dispute resolution mechanism
members to promote multilateral economic cooperation in trade and investment in the acidic
rim. All the member countries are in the border
of Pacific rim both Asia as well as America.
Include countries like USA,
Japan,china,Australia, canada, Russia,
singapore, Hong kong, Malaysia etc.
member states account for 55% of worlds
GNP, and 49% of world trade
diverse interests.
ASEAN - Association of
South East Nations
ASEAN
member
countries
have
developed economically at a faster rate
in the globe. their strength is well
educated and skilled human resources.
Their strength enabled them to achieve
faster industrialisation. Further the
member countries are rich in oil, mineral
resources,
agricultural
goods
and
modern industrial products.
An ASEAN Free Trade Area (AFTA) between the six original members
of ASEAN came into effect in 2003
ASEAN and AFTA are moving towards establishing a free trade zone.
AFTA was able to cut tariffs on all intrazonal trade by about 5% by Jan
2008 and also it encouraged inflow of foreign trade in this region.
ASEAN member countries have a population greater then that of EU or
NAFTA, but their per capita GDP is smaller. However economic growth
rates of ASEAN members are among the highest in the world
MERCOSUR
originated in 1988 as a free trade pact between Brazil and
Argentina.
was expanded in 1990 to include Paraguay and Uruguay
and in 2005 with the addition of Venezuela
It has been slow in developing a common external tariff
and economic problems of member countries have hampered
growth.
Obj
Establishment of Free trade Zone
A common external tariff
Free movement of capital, labour and services.
CURRENT MEMBERS
1. Afghanistan
2007)
2. Bangladesh
3. Bhutan
4. India
5. Maldives
6. Nepal
7. Pakistan
8. Sri Lanka
OBSERVERS
1. Australia
2. China
3. European Union
4. Japan
5. Iran
6. Mauritius
7. Myanmar
8. S. Korea
9. USA
POTENTIAL FUTURE
MEMBERS
OTHERS
SAARC
Commodity Agreements
These are inter governmental arrangements concerning